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Fonterra Organisation Analysis

Paper Type: Free Essay Subject: Marketing
Wordcount: 2411 words Published: 11th Jan 2018

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In this assessment I would like to discuss about Fonterra organization which is famous for the service of its milk and other dairy products. Fonterra is a multinational company providing its services all around the world. Its head office is situated in New Zealand because it is a kiwi company. Fonterra have partnership with other companies and co operates with the farmers as well. Fonterra deals with more than 140 countries and it covers 33 % part of the world in dairy products.

Part 1


Fonterra is the company which deals all around the world. In business there is one important thing that we have to be really careful while we communicate in all departments. In Fonterra also so they have to communicate well with their staff and their stakeholder as well. It is not easy to proper communicate in big organisation but they do really well.

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Effective communication in the organization and experienced staff- In business communication staff plays an important role because they take message from people and pass to top level of organisation. So they have to hire professional and experience staff so it easy to communicate for them with all department and all other people. They make clear context and understand easily, so it will be easy to give feedback because they understand very well what exactly want to know. For example I work in wine store when we get any Chinese customer, it’s really hard for us to understand him and explain what he wants to know. That’s why we have Chinese staff as well because they can talk in their language which helps them to understand easily. In Fonterra they organize meeting in the end of month or annually.

Different modes of communication- They communicate across the world through different ways of communication like media newspaper fax and phone email letter etc. Effective communication is the part of business and they do same things. They have their head office in Auckland New Zealand. They have branch office all around the world which helps them to make easy communication.

Organisational Goal:

The goal of Fonterra is that to be famous and successful dairy company all around the world because of their service quality and performance. Every organisation has their own goal but to achieve the goal they use different strategies and plans as well. Before to take any decision first thing that they discuss all things and make clear to everyone about their goal.

Their main objectives are-

  • They want to expend their business in different countries.
  • Company want to improve the level of customer satisfaction.
  • Provide information to customers more quickly and efficiently.
  • High awareness of health and safety measures.
  • Awareness of rules and regulations of every country in which Fonterra is running its business.

Before make any policy, they take feedback from people so it will be easy for them because they know very well what people expecting from them. To achieve their goal, they have to care about those people who link with organisation. They hire the people through all around the world. So it will easy to communicate with supplier and customer because they will communicate in different languages. They will provide any information what they want to know. They will provide information day and night through whole year which help them to achieve their goal.

Organisation culture and Ethics

These two things are really important in an organisation. People have different values experience and attitude because everybody has their own thinking and belong to different religion and culture. Ethics also play an important role in business. Ethics means about moral values, everybody have moral values where they decide what is good or bad. For example farmers expect more prices for their milk and they feel like organisation do not give them much importance even company giving them proper attention. Another example is china where Fonterra going in loss even them applies the same vision which they apply to other countries and making profit there. Behind of this, there is one reason because they are from different culture, values and expectation from the organisation. That’s why they have to create their vision behalf on the people expectation and values.

Management of knowledge resources

In organisation, there is really important thing that how you manage your knowledge resource. If you manage your knowledge resource in well way, you can run your business successfully. The same thing applies in Fonterra as well but they use really well their knowledge share ideas to each other. They know very well in business it’s really hard to rely on one country when you have business all around the world. That’s why they import and export from other countries as well. They always communicate all other companies and people as well to get information about the market.

Quality of product – They always care about their quality of products that’s the way where they can attract more people to invest money and more customers as well. When they export their products that time they provide health certificate as well. They hire staff all around the world because in this way they can communicate well with the people and know them better. For example I am basically from India so I have more information about the people like what they exactly expect from the company than about any other countries.

Human resources- They know very well importance of the farmers and they always try to make them happy and now they take decision that farmers can have their own share in company. They know very well so in this way they can encourage the farmers to increase their productivity. They always follow the rules. They always care about environment and they communicate with farmers and all other person who link with company. For example last time they warn farmers that if they will not follow the rules so they ready to face problems and their milk not be collected.

Group Dynamics:

There is always easy to work in group rather than individual. Because it is really effective to work in group specially a big company like Fonterra. There is really hard to work in without participation of all department of the company. When you work in group it is easy to support the people in group it is really beneficial. In group it is easy to clarify the problems and in group it is easy to find the solution of those problems. There is no barrier while they communicate; there is no difference of juniors or seniors.

Improvement in relations- People are specialised in their field when they work in group, it is better opportunity to know each other. Here they can share their ideas to each other.

Helps in making new and innovative ideas- In groups the different people suggest different types of ideas. There is another thing about group that they have small groups where people can express their idea and it’s easy to explain and understand.

In this way we can say that if Fonterra is famous company all around that’s result of their group work. They use different ways of communication while they work in group.

Meeting management:

Meeting management in an organization there are lots of importance of meetings but we have to be careful while we in meeting .we have meeting because of some purpose. In Fonterra also have meeting monthly or annually. Where people come from all department and they discuss about their strength and weakness. They decide like what position they have in market and where they stand now. What they need to improve their weakness and how they can perform much better. Following are the things we have to concentrate on:

Select the person- the first thing about meeting that we have to make sure that that are coming to the meeting. We have to confirm that they are able to come or not.

Send the agenda- in Fonterra they send agenda to those people who are going to participate in meeting, so in this way they can know about agenda and they can prepare some work for meeting, so it is easy to discuss in meeting.

Time and place- we have to decide time and place and tell to every participant trough mail, Phone txt or fax and just make sure that is that it is right for them to come on that place and time. We have to start meeting on time, so there is lesson for those entire participant who comes late and they can come in time next time.

Provide hard copies of agenda- it will be easy for everyone, they have chance to discuss more about the agenda.

Purpose – we organise meeting for any purpose .so we have to be careful when we in meeting that are we going in right track, we have to discuss all those points which we have in agenda. We have take opinion from all participants so we can discuss and give them feed back as well.

Clarify the Agenda and role – we have to clarify the agenda and the roles of all participants. It will be easy for them to understand because they know abjectly what they have to do after that they will try to give their best. It is really beneficial for the organisation.

Meeting progress – we have to evaluate the meeting like we have to see that everybody is interesting to take part in discussion. In meeting that’s really important that they present there physically and mentally as well.

In the end we have to finish meeting on time and just make sure that it shouldn’t get boring because if meeting takes long time it start to get boring, there is no point of meeting when participant start to get tired and get bored.


Here I am going to talk about of those people, organisation, people or societies which are link or affected by company or those act which are done the company. Fonterra is really big company so there is lot of stakeholder.

Farmers- Firstly I would like to talk about farmers, more than 10000 farmers co operate the company, so they always communicate with them they have meeting with them and keep in touch with them through different type of communication, where they listen and give them feedback as well, for example Fonterra decide that farmers can own and control by their own, this decision will really attract more farmers so that’s also a way of communication.

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Government- Fonterra always communicates with government like before to take any project approval etc. they communicate with them through different ways media mails letter and meeting as well. For example last time, they have problems with use of water and to throw wastage of production in the water. That time they collect information about this matter from all responsible people and provide to government. Other dairy companies, they have commitment to other dairy company and communicate with them trough video conference, teleconference even they are far from each other but there is no matter.

Investors- Investor invests their money which helps to grow the company. Fonterra also sales shares in some countries to make it economically better.

Employee- Employees play a vital role in the expansion of organizational business and give their best to run the company. Fonterra give them proper attention while they communicate different ways like- online, email, phone, fax etc.

Customers- Customers are the main stakeholders of any company. It depend on them what response they give for any product or company .they communicate with them through newspaper media and advertisement, for example last time they have offer buy any two product of Fonterra and get 25% off on those product. That’s also way of communication.


Network in Fonterra they use different type of communication. They are really conscious about people when communicate with them but it depends what method they using while they communicate. They use different aspects of communication such as:

Intrapersonal communication: In Fonterra they make small group where they communicate to each other.

Mass communication: It is really easy way of communication. In this method we communicate through media channel like radio TV or news paper .for example we get the news about Fonterra that they doing well and contribute a lot in economy of New Zealand and they are going to increase the price of some products. We get all those news through newspaper radio and TV.

Internal communication: In Fonterra there is lot of importance of internal communication. They communicate with all departments in the company and all stakeholders as well. Moreover, they discuss about their aim and performance, provide all information to them. Which helps them to find out the problems? Besides this, they tell them what their responsibilities and what they have to do.

In the company they doing well communicate to each other through different methods. They have another good thing that they listen and understand to each other and give them feedback as well .they have clear context so which makes easy to understand for everyone.


Fonterra is the famous and popular company because of their product and services. They care about everyone around them. They always complies laws and rules which makes them different from others. The communication process is really easy even the company is worldwide. The culture of organisation is very friendly which help everyone to enjoy the work and encourage them to give their best at workplace. At the end we can say that it is not an easy jobs to the mange the things but them doing well.


Suitable place- First thing I would like to recommend that the production place is too far from the market area or where they sale their product. Some time it is really difficult to communicate and also wastage of time and money because staff have to go one place to another place.

Special focus- Another thing is that they have to concentrate more where they are facing loss like- china. It will help them a lot to make profits. They also encourage the more farmers to come in dairy industries which will beneficial for them and farmers as well. In this way they can increase their productivity and profitability.


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